The Reserve Bank of India (RBI) on Wednesday said that it has cancelled the certificate of registration of four NBFCs (Non-Banking Financial Companies). While the bank regulator did not disclose the reasons, it has put out the names of the companies.
The companies whose certification has been cancelled are SRM Properties And Finance Company (Rajasthan), North East Region Finservices Limited (Manipur), Sowjenvee Finance Limited (Karnataka) and Opel Finance Limited (Patna).
These companies will not transact the business of a non-banking financial institution, the RBI said.
This comes just two days after the RBI cancelled the licence of Pune-based Seva Vikas Co-operative Bank and imposed a monetary penalty of Rs 48 lakh on Kerala State Co-operative Bank Ltd, Thiruvananthapuram.
The RBI said Seva Vikas Co-operative Bank did not have adequate capital and earning prospects and that it would be unable to pay its present depositors in full. The public interest would be adversely affected if the bank is allowed to carry on its banking business any further, the central bank said.
For the penalty on Kerala State Co-operative Bank, the RBI said it did not comply with its directions specifying the extent and the conditions subject to which co-operative banks were permitted to hold shares in any other co-operative society. The bank also failed to comply with the RBI directions limiting the quantum of gold loans that could be granted under the bullet repayment option.
